Meanwhile, Illinois issued Square the cease and desist order after the IDFPR’s finding that Square is in violation of the state’s Transmitters of Money Act. The act requires any business “selling or issuing payment instruments, transmitting money, or exchanging, for compensation, payment instruments” to be licensed by the IDFPR.

The department ordered Square to stop doing business in the state and produce documents on all Illinois customer account activity, money transmissions and “independent reviews of Square’s Anti-Money Laundering program.”

The order called for Square to file those documents with the IDFPR by Feb. 19, 2013. IDFPR spokeswoman Susan Hofer told The Green Sheet that she could not say if Square had met the deadline. A Square representative stated, “We’ve been in close contact with the Illinois Division of Financial Institutions for several months and are addressing their concerns.”